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[BeamRider]

I was thinking about working up in Canada in the spring.......I am not sure how bad the taxes are gonna hurt me. I have tried to read the tax laws for the USA and Canada.....I'm confused. I am assuming I gotta pay taxes for both countries....but the key is how much of what I pay will I get back on my USA tax return ?

I would appreciate any assistance.......

Regards

[Kiwi Tax]

As a US citizen, what you have to file, and whether you pay tax can depend on the amount of income you earn for work performed in Canada:

· If you earn less than $10,000 (Canadian), then you are exempt under the treaty, and you don’t need to file a return, unless you had tax withheld at source. You would file to get back the tax withheld.

· If you were present in Canada under 183 days and your employer does not have a permanent establishment (“PE”) in Canada, then you are exempt. A PE is typically an office or factory, but the definition is broader than just that.

· Otherwise, you will be subject to Canadian tax.

If you do pay Canadian taxes you get credit for the Canadian tax on your Federal Return

Here is a link to a Canadian Tax Calculator -
http://lsminsurance.ca/calculators/canada/income-tax

Hope this helps
_________________
Kiwi Tax Service
www.kiwitax.com

[BeamRider]

Very helpful indeed.....geeeeeez...after looking at the tax calculator....working up there doesn't sound all that great.

Thanx again

[Kiwi Tax]

Canadian Federal Tax is not so bad, but the Provincial Taxes are what drives the total up.

Americans gripe about our tax system (many good reasons) but for a comparison click on the link below to see what citizens of other countries pay in taxes.

http://www.worldwide-tax.com/
_________________
Kiwi Tax Service
www.kiwitax.com